Business Taxes Law Guide – Revision 2015

Sales and Use Tax Annotations

170.0000 COLLECTION OF TAX BY BOARD

Annotation 170.0075

(a) IN GENERAL

170.0075 Sales Tax Deposit. The sales tax deposit required by section 6701 is required to be held in trust for the beneficial interest of the taxpayer and used solely in the manner provided in sections 6701 and 6815. That is, the Board is restricted under state law from using the security for any purpose other than as specified in these sections. This restriction is equally applicable in the bankruptcy proceedings. Hence, the Board of Equalization may not release the sales tax deposit to the trustee. It must be applied to the taxpayer's sales tax liability. 10/23/95.